Bill Text: IL HB3449 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Amends the Illinois Freedom to Work Act. Expands the scope of the Act to apply to all employees (rather than only low-wage employees). Prohibits all covenants not to compete. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3449 Detail]
Download: Illinois-2021-HB3449-Introduced.html
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1 | AN ACT concerning employment.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Freedom to Work Act is amended by | |||||||||||||||||||||
5 | changing Sections 5 and 10 as follows:
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6 | (820 ILCS 90/5)
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7 | Sec. 5. Definitions. In this Act: | |||||||||||||||||||||
8 | "Covenant not to compete" means an agreement: | |||||||||||||||||||||
9 | (1) between an employer and an a low-wage employee | |||||||||||||||||||||
10 | that restricts the such low-wage employee from performing: | |||||||||||||||||||||
11 | (A) any work for another employer for a specified | |||||||||||||||||||||
12 | period of time; | |||||||||||||||||||||
13 | (B) any work in a specified geographical area; or | |||||||||||||||||||||
14 | (C) work for another employer that is similar to | |||||||||||||||||||||
15 | the such low-wage employee's work for the employer | |||||||||||||||||||||
16 | included as a party to the agreement; and
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17 | (2) that is entered into after the effective date of | |||||||||||||||||||||
18 | this amendatory Act of the 102nd General Assembly . | |||||||||||||||||||||
19 | "Employer" has the meaning given to such term in | |||||||||||||||||||||
20 | subsection (c) of Section 3 of the Minimum Wage Law. | |||||||||||||||||||||
21 | "Employer" does not include governmental or quasi-governmental | |||||||||||||||||||||
22 | bodies. | |||||||||||||||||||||
23 | "Employee" "Low-wage employee" means any individual |
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1 | permitted to work by an employer an employee whose earnings do | ||||||
2 | not exceed the greater of (1) the hourly rate equal to the | ||||||
3 | minimum wage required by the applicable federal, State, or | ||||||
4 | local minimum wage law or (2) $13.00 per hour .
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5 | (Source: P.A. 99-860, eff. 1-1-17; 100-225, eff. 8-18-17.)
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6 | (820 ILCS 90/10)
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7 | Sec. 10. Prohibiting covenants not to compete for low-wage | ||||||
8 | employees. | ||||||
9 | (a) After the effective date of this amendatory Act of the | ||||||
10 | 102nd General Assembly, no No employer shall enter into a | ||||||
11 | covenant not to compete with any low-wage employee of the | ||||||
12 | employer. | ||||||
13 | (b) A covenant not to compete entered into between an | ||||||
14 | employer and an a low-wage employee is illegal and void.
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15 | (Source: P.A. 99-860, eff. 1-1-17 .)
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16 | Section 99. Effective date. This Act takes effect upon | ||||||
17 | becoming law.
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